YM BioSciences reports revenue of $0.3 million for first quarter 2012

YM BioSciences Inc. (NYSE Amex: YMI, TSX: YM), a drug development company advancing a diverse portfolio of hematology and cancer-related products, today reported operational and financial results for its first quarter of fiscal 2012, ended September 30, 2011.

"During the quarter, we completed enrollment for the 166 patient Phase I/II trial of our JAK1/JAK2 inhibitor, CYT387, in myelofibrosis. We look forward to presenting updated data from this study at the American Society of Hematology meeting in December 2011," said Dr. Nick Glover, President and CEO of YM BioSciences. "CYT387 has already demonstrated clinically meaningful and durable responses across a range of once-daily doses. Furthermore, the favorable efficacy and safety profile we have observed to date provides us with substantial dosing flexibility.  In order to complement our promising once-daily clinical results, during the quarter we initiated a Phase II dose-escalation trial intended to determine the maximum tolerated dose of CYT387 when administered twice-daily at higher doses than previously tested."

Financial Results (CDN dollars)
The interim consolidated financial statements and comparative information for the first quarter of fiscal 2012 have been prepared, for the first time, in accordance with International Financial Reporting Standards ("IFRS"). Previously, the Company prepared its Interim and Annual Consolidated Financial Statements in accordance with Canadian Generally Accepted Accounting Principles ("Canadian GAAP") up to June 30, 2011.

Revenue from out-licensing for the first quarter of fiscal 2012, ended September 30, 2012, was $0.3 million compared with $0.3 million for the first quarter of fiscal 2011.

Net finance income increased by $11.3 million for the first quarter of fiscal 2012 compared to the first quarter of fiscal 2011. This change is primarily attributed to a change of $8.8 million in the fair value adjustment for USD warrants. Under IFRS, warrants denominated in a different currency than the Company's functional currency must be classified as a financial liability and measured at fair value, with changes reflected in profit or loss. For the first quarter of fiscal 2012, the Company incurred a gain of $5.4 million on the revaluation of warrants compared to a loss of $3.4 million for the first quarter of fiscal 2011.  Foreign exchange resulted in a gain of $2.0 million for the first quarter of fiscal 2012 compared to a loss of $0.4 million for the first quarter of fiscal 2011, due to the increased value of the U.S dollar.

Licensing and product development expenses were $6.5 million for the first quarter of fiscal 2012 compared with $5.7 million for the first quarter of fiscal 2011. Increased development expenses for CYT387 and CYT997, and increased spending on database services and stock option expenses were offset by decreased expenses for nimotuzumab and a decrease in employee compensation costs related to restructuring costs incurred during the first quarter of the prior fiscal year.

General and administrative expenses were $2.2 million for the first quarter of fiscal 2012 compared with $2.2 million for the first quarter of fiscal 2011. Increases in G&A employee stock option expenses were offset by decreases in travel and employee compensation costs.

Net loss for the first quarter of fiscal 2012 was $0.9 million ($0.01 per share) compared to $11.3 million ($0.14 per share) for the same period last year.

As at September 30, 2011 the Company had cash and short-term deposits totaling $75.6 million and accounts payables and accrued liabilities totaling $4.4 million compared to $79.7 million and $4.4 million respectively at June 30, 2011.  Management believes that the cash and short-term deposits at September 30, 2011 are sufficient to support the Company's activities for at least the next 18 months.

As at September 30, 2011 the Company had 116,711,448 common shares and 7,366,418 warrants outstanding.